Reason of big losses in stock market.

Most of the people came here with so many dreams to become richer instantly, big losses r the result of this dream cause you should have work hard to make ur dreams come true but u thought it is very easy to earn frm here. If u take it as a gamble then whose fault is this? Just yours, accept it and learn something then only u could make ur dreams true.

 

2nd reason of big losses in stock market.

Most of the people get indulge in these types of " Tip providers " who claimed 90-100% accuracy in stock market, they r not doing any work on stock market they r just selling u dreams and if some one has actually that much accuracy then y the hell he/she is giving u tips for money cause he can earn millions of money directly frm market.

Just think whose mistake is this?

 

U r absolutely correct but I have never said these are the only reason. there r so many reasons of big losses and even person who has the knowledge as well as experience too get loss here too.

I will update those too but can't update all together becuase of so many other works too, hope u can understand cause u also have family too like me.

 

Most of traders r confused at earliest stage weather to go for buy or for sale or hold and just because of this confusion they sell all their stock very lower level in panic and buy at very higher level when stock is topping out.

 

Most of all traders trade with emotions and just because of their emotions they got losses cause in stock market there r so many player who r always ready to play with others emotion.

 

Yes Sanjay, as you said, we should refrain from tip providers in the market.
But, there are few technical analysts who're not that bad, I would never say that they're always 100% correct.. the problem is they're also made to speak on calls everyday, for example, there may be a day when they're genuinely interested not to speak out on any calls, but they have to because they're bound to do so by contract, may be.
I, in my opinion, like few people (I'm not their fan or something ) like Mitesh Thacker & Mehraboon Irani. Both are good in what they're saying, of course they're knowledgeable as Shabbir said market education is very imp. I've observed that they're good, particularly Mehraboon is good when he is analysing something, I've not seen him just speaking to sell his calls/recommendations anyhow, he's a thoughtful speaker.

Disclaimer: I DO NOT follow the above persons' calls, so do not pull my legs
I just expressed my opinion, it is never wrong to hear someone for 2mins on what he's trying to say, but it is wrong to blindly follow them.

Please share your views also.

 

Speaking of Mehraboon Irani, novice investors can get to hear the information/data from them. As Mehraboon is an ace person and they're heading/working in big brokerages, they get to see/hear much more than novice people would do. They're interacting with HNI clients, global clients, investor summits, hence Mehraboon might be knowing some facts more than me, he might be more aware of global news than me. For example, Mehraboon would get access to some China data earlier than me and would be speaking on that because he's in the scene of things. Besides, he's definitely knowledgeable.

Speaking on Mitesh Thacker, he has carved a corner for himself in technical analysis. He's decent, I don't know if he's good/very good,etc. Mitesh runs his own advisory services ( http://www.miteshthacker.com/services/ ), and charging between Rs. 4500 - Rs. 13000 for his services. I haven't following his recommendations, but there're friends of mine who have followed and had been benefitted. Mitesh also comes on TV, I've noticed him 2-3 times.

Note: I'm not advocating or doing marketing for these 2 gentlemen out here, I'm just sharing my views and what I got to know of them. Please share your views also of these 2 persons. Please do not get angry ( i know someone reading this post will say that I get paid by these 2 gentlemen to speak for them everywhere), please it is not like that, I'm just sharing my views. I'm sure that there are less than 10% people who can say that they have never heard people speaking on tv, so let's not get into that zone at all.

 

You are correct, By this quote I just wanna say don't take any paid tips cause all these r bullshit and they r just selling u dreams.
About hearing some one for 2 mins, I never said don't listen any one but I mean to say listen every one but do what ur mind say.

For a market traders and analyzers I can say this, In market there r so many traders and analyzers but actually now who r analyzing before they were traders, they have not followed market rule and lost their money and after that they realize that have made mistake then learnt about market but now problem is they don't have money to come again in market so they decided to be a analyzer.
Another one was analyzers before but they earn well by doing that and they thought why they r still out of market, they r giving so many advises to save people money why can't they also earn from market and then they also start trading.

Moral of the story for retail investor is - If u have lost all the money then try to be educated and after that be analyzer.
And if u have money but no knowledge then find some one who is genuinely knowledgeable.
There is nothing wrong in listening people like u mentioned but to follow them blindly is absolutely rubbish. You also said not to follow them blindly, so some where we are in same boat.

 

Most of new birds stand between bears & bulls and not able to decide weather go for long or short (lack of knowledge).

 

Most of the traders react on rumors, they don't use their own mind before any trades.

 

Hi Shabbir here is the reason why experienced and knowledgeable people also get loss here sometimes.

Because of experience and knowledge they start getting most of all trades in their favor and the result is they start taking it for granted or u can say become overconfidence and start believing that they can't get big loss here.

Then they stop believing that trader must do what market ( charts ) saying and they start putting their efforts to other things like news, results, etc,.

Result is if they got any stock that hit their stop loss they don't exit from that what they were doing before and earning well, question is why ?

Answers r so many and here we are :-

1) Ego hurts and their ego stop them to book loss.
2) Over confidence, they became very confident that it will bounce back and start accumulating even after that.
3) News, they start telling them self that it hit the stop loss because of this bad news which will be solved in coming days.
4) They stop exploring so much of scripts what they were doing before and the result is they pick bad stock or cheap stocks too.

I came to know only these frm one of my friend who recently ruined up his money last year only, till 2010 he was earning like anything even in financial crisis.

In his own words " yaar main bhool gaya thi ki market sabki baap hai, main saala market ka baap banne chala tha."
I apologize for using abusive here but believe me these r his own words.

I Know more people who work with me and before earning handsomely and got loss because of similar type of thoughts.

 

R u earning by your investment/trades? 10 Lessons

Lesson 10: R u earning by your investment/trades?
Sun Apr 20, 2014 9:11 pm

Don't average your loss.

Yes it has seen many time investors/traders got huge loss just because they were tried to average their loss making stocks.




Believe me it may happen to any one and best thing to avoid this is only stop loss or a strategy by which you can control your stops.

Yes strategy.

Have you made any strategy to control loss making trades or still doing average in hope that one day your huge loss making stocks will give you good return.

Stop hoping or dreaming as actually now you are not waiting for gain because you actually waiting for an opportunity to recover from loss and if you got your bought price back by any chance you will definitely exit that moment only. I bet you will not wait for gain because of that pain what you experienced.

Still not convinced, Ok just have look at below chart.




Now answer yourself can you average this much and that much long period, don't lie as you can't average, stop thinking that you can do it as there are many examples of this that people who tried this got out with huge losses even few major banks got bankrupt when they tried this.


I hope you all have enjoyed this session of learning.

I will update more interesting articles later.

Views, comments, critics, etc. all are welcome.


Lesson 9: R u earning by your investment/trades?
Sat Apr 19, 2014 11:46 am

Don't try to recover your loss because you can't.




Yes, what you heard is correct.

Confused.

Don't be, I will tell you why I am saying so.





Just accept the fact profit and loss are the part of life and it remains same with stock market.
You should try to analyze the mistake by which you lost to avoid more loss.




Rest in another post.

 

Lesson 9: R u earning by your investment/trades? (Remaining post)

This the fact of stock market and if you are not prepare or willing to accept than you shouldn't be here.




Stop repeating mistakes instead start taking lesson from them, once you understand all your mistakes, you will automatically start getting profit and there would be no need of recovery as your profit will beat your loss.

Accept it before its too late as there is no end of mistakes if you don't start evaluating your mistakes.